Executive Summary

InterOil Corporation is developing an Integrated Oil and Gas Company in Papua New Guinea. The Company has positioned itself to own assets through the entire value chain - from the well-head to retail. InterOil has also positioned itself through a joint venture holding company to develop a LNG project in Papua New Guinea. The joint venture company is targeting 2015 for the delivery of 'first gas'.

Upstream

InterOil's exploration acreage portfolio is one of the largest held by a single company and comprises petroleum licenses covering about 3.9 million acres. We currently have three onshore exploration licenses in Papua New Guinea, namely; Petroleum Prospecting Licenses (PPLs) 236, 237 and 238 and located in the Eastern Papuan Basin northwest of Port Moresby. Our licenses are controlled and operated by InterOil and are are the sole/central focus of our exploration and development activities in our upstream exploration and development segment. During the past few years, the upstream business segment has achieved significant success and following recent successful gas and condensate discoveries is expected to continue to add significant value to the Company and its shareholders.
 
Some recent accomplishments since inception:

•	Our exploration and recent drilling successes has confirmed the presence of a potentially prolific petroleum field within which the Elk/Antelope field lies, thus elevating the prospectivity of adjacent areas which are also located in our license areas.
•	Identified two distinct sandstone reservoirs - (Pale and Subu sandstones) and a reef discovery in the Antelope block.
•	Acquired approximately 421 miles of 2D seismic and several thousand miles of seismic, magnetic and airborne surveys over our prospective license areas.
•	Our Elk-1 gas discovery in 2006 recorded the then highest gas flow in Papua New Guinea with a gas and condensate flow rate recorded at over 100 Million SCF/day.
•	2008 - The Elk-4 appraisal well was flow tested at 86 million standard cubic feet (mmscf) per day.
•	2009 - The Antelope-1 gas/condensate discovery well, was spudded in October 2008 targeting a gas column in the Elk/Antelope structure, was flowed at 382 Million SCF/day with 5,000 barrels of condensate per day (BCPD) for a total 68,700 barrels of oil equivalent per day (BOEPD), setting a new record rate for Papua New Guinea. (see press release dated March 2, 2009 for further information Click Here). Ultimately the Antelope-1 was confirmed as a world record flow rate from a vertical gas well by the Guiness World Records.
•	2009/10 - The Antelope-2 appraisal well has been confirmed as another highly successful gas and condensate appraisal discovery well and achieved even greater flow rates at of 705 million cubic feet of natural gas per day (MMCFD) including 11,200 barrels of condensate per day (BCPD) for a total 129,000 barrels of oil equivalent per day (BOEPD). (see press release dated December 1, 2009, for further information Click Here).
•	Prolific gas and condensate flow rates will benefit a proposed gas project in Papua New Guinea and result in a lower, project completion capital cost, if a lesser number of productive wells may prove to be required to achieve sufficient volume for sustainable production.
•	Our two onshore wells, the Antelope-1 and Antelope-2 that were drilled into the Antelope structure penetrated porous shallow marine reefal facies with good to excellent reservoir character.

Midstream Assets

•	InterOil built and owns a Commercial Oil Refinery capable of processing 36,000 barrels per day.
•	The refinery has a large enough processing capacity to meet the current and predicted demand for petroleum products in Papua New Guinea.
•	The refinery is configured to take advantage of the light sweet crude available in-region and so avoids the need for hydrotreating or complex and expensive heavy oil processing such as catalytic cracking and coking.
•	The refinery thus consists of only atmospheric distillation plus a modest catalytic reformer for production of gasoline blendstock i.e. an ultra-simple hydroskimming complex.
•	Currently operating below optimal capacity provides significant opportunities for growth in and around the surrounding region.
•	Crude oil supply contract with BP Singapore.

Downstream

•	InterOil is the largest distributor of refined products in Papua New Guinea and distributes under its branded name InterOil Products Limited.
•	The InterOil distribution business has grown through the acquisition of distribution assets previously owned and operated by BP and Shell in Papua New Guinea.

 
InterOil Products Limited owns and operates:

	Distribution depots
	Seaboard Terminals
	Trucking Systems, and
	A comprehensive retail network
	Aviation Refueling Facilities

Disclosures

InterOil Code of Business Conduct